PTI: October 09, 2017
New Delhi, Oct 9: Tyre maker CEAT has acquired 163- acre land in Chennai for over Rs 60 crore to set up a manufacturing plant for radial tyres.
Property consultant JLL India, which facilitated the transaction for CEAT, said the tyre-maker plans to invest Rs 5,000 crore in this green field project in next 5 years.
"The deal involved the purchase of a massive 163-acre land parcel in Chennai to set up a radial tyre manufacturing plant," JLL India said in a statement.
The consultant did not share the deal value of this land.
However, sources said that the land value is worth over Rs 60 crore.
"CEAT plans to invest approximately Rs 5,000 crore into this mega green field project in a phased manner over next 5 years," the statement added.
CEAT is the flagship company of RPG Enterprise.
JLL India said it also facilitated the associated incentives negotiation with the Tamil Nadu government.
The land parcel is located along the upcoming Chennai Bangalore corridor in the industrial cluster of Sriperumbudur.
This corridor has presence of many automobile OEMs (original equipment manufacturers).
"This is their first plant in South India and is expected to create over 2,000 jobs in and around the region, boosting its overall socio-economic status," JLL said.
JLL India MD (Chennai & Coimbatore) Sarita Hunt said: "The primary reason for CEAT to choose Chennai and specifically this land parcel - for this investment was the proximity to OEMs like Hyundai, Renault Nissan, Ford, Daimler, KIA, Isuzu, etc".
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.